SK Telecom and non-telecom SK Square are officially independent, relisted on Nov. 29

2021.11.01 10:58:19 | 2021.11.01 13:19:19

Park Jung-ho and Ryu Young-sang. [Photo by SK Telecom]이미지 확대

Park Jung-ho and Ryu Young-sang. [Photo by SK Telecom]

SK Telecom and SK Square start anew as independent entities each responsible for telecommunications business and non-telecom business for faster response to investment opportunities.

The first reorganization in SK Telecom’s 37-year history had full blessing from its shareholders last month.

SK Square will focus on new investments in semiconductors and information and communications technologies with an aim to improve corporate value. Park Jung-ho, former CEO of SK Telecom, will spearhead bold investment in semiconductor market at home and abroad as the new head of the non-telecom business.

In Korea, a sub-subsidiary of a holding entity must own a 100 percent stake in its subsidiaries or sell its holdings in two years of acquisition. SK hynix under SK Square now is free from the law thanks to the spin-off and thus is able to actively seek for M&A opportunities.

Major subsidiaries of SK Square include SK hynix, ADT Caps, 11st Street and One Store. They are expecting to receive a fair business valuation under the non-telecom parent.

The remaining SK Telecom will be led by Ryu Young-sang, president of mobile network operations division at SK Telecom. It plans to go all-out efforts to advance its new business areas such as AI-based subscription and metaverse platform on top of the mainstay communications business with an aim to expand its annual revenue to 22 trillion won ($18.7 billion) by 2025 from 15 trillion won in 2020.

Shares of SK Telecom will be relisted on the Kospi on Nov. 29 after suspension of trade for a month. SK Square shares will be listed on Nov. 29 as well.

By Lee Jae-cheol and Lee Ha-yeon

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